Legal Question in Personal Injury in Texas
Personal Injury
I was injured in an auto accident while on the clock in the employ of LazyBoy. I recently recd letter from my former employer listing period of my employment including aknowledgment accident date and of time, ot and vacation pay etc compensating pay lossed as result of the accident. I have undergone therapy siatic injections etc and was to told to consider surgery as I have 3 herniated disks confining
me to a seditary life. I was recently quoted that the surgery will cost $250K. Myquestion is the money from this law suit is it taxable? And if I agree to this amt Can I get my surgery in Mexico to save on cost? How does this work? as to control of my settlement?
3 Answers from Attorneys
Re: Personal Injury
First of all, if you have an attorney, you should ask him or her these questions because your attorney is likely to know much more about the details of your case (which can greatly affect the answer to the questions). If you do not have an attorney, please listen to this: Your case is far too complex and there is far too much at stake for you to be trying to handle this on your own. You will likely cost yourself far more in lost settlement dollars than it would cost to pay an attorney. A good personal injury attorney can almost always get you far more money than you can get for yourself, even considering his fee. Please call me immediately.
In an attempt to answer your questions as best I can with limited information, bodily injury settlements are generally not taxable, except those portions of the settlement that are reimbursement for lost wages and medical bills. The "pain and suffering" component is considered a "casualty-loss reimbursement" and is not taxable. However, structuring the settlement in such a way that the IRS cannot get its hands on your settlement is complex and should be done by an experienced attorney. Again: call me.
As to whether you can take the money and get your surgery in Mexico, there is so much I have to say about that that I cannot possibly type it all in this small space. There are at least a half dozen questions I would need to ask you before I could answer your question accurately. Again: call me. I would be happy to assist you. All cases are taken on a contingency fee basis and consultations are free.
Re: Personal Injury
Based on what you written, you really need to discuss the facts of your case with a local personal injury law firm. If you already have a personal injury law firm assisting you, then your should discuss these questions with your law firm.
Based on the limited information that you provided, a personal injury agreement to settle are generally not taxable. The exception to this non-taxable status would be the parts of the settlement regarding reimbursement for lost wages and medical bills. Ensuring that you settlement is drafted in a manner which will benefit you and not the IRS is an item that you should not handle on your own.
Regarding having the surgery in Mexico, I am not going to respond due to many questions about the treatment that you may or may not receive. Additionally, there are many other factors to be considered by you prior to making that decission.
Should you be interested in discussing your options with a local personal injury law firm, please contact my paralegal Tina ([email protected]) to arrange for an initial in-office consultation.
Re: Personal Injury
As a general rule, compensation for pain and suffering is not taxable, compensation for lost wages, is taxable. As others have mentioned, do not do this case yourself. Most personal injury law offices (including mine) do not charge unless they collect for you, and then only a percentage of what they do collect. You have the ability to mess up this case (or at least not maximize the value of the claim). I strongly recommend you meet with a lawyer ASAP.